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How did the shrinking economy lead to increased layoffs of workers in The Great Depression?

User Keatch
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The shrinking of the economy lowered the profit after selling goods and it wouldn't make sense not to lay off workers
User Myroslav
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Since the economy shrunk, business owners didn't have enough money to pay their workers, and since they didn't sell much, they didn't need workers. Since many people didn't have a job because of the layoffs, they didn't have money to go buy things. It became a cycle.
User DoctorDep
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